todays age

Prominent article by Barry Fitzgerald.......and remember the impact of his last article......nothing new here but sure does create interest and credibility

FOUR MILE URANIUM FIND COMING TO SURFACE

Barry Fitzgerald
April 3, 2007


CONFIRMATION that the Four Mile discovery of US group Heathgate and Melbourne-based Alliance Resources near Heathgate's Beverley uranium mine in South Australia is one of Australia's best has yet to occur, with an initial resource estimate still not made.

But the partners have done the next best thing by revealing that an eight-week scoping study has started and that it will lead to a pre-feasibility study and mining lease applications later this year.

Shares in the Melbourne-based Alliance surged 25¢, or 12 per cent, to $2.30 in response to the revelation, which had the effect of rekindling expectations that when the initial resource estimate is finally released — it was due before last Christmas — it could be something special.

Alliance has signalled previously that high-grade uranium hits at the discovery indicate potential for it to eventually be the biggest uranium deposit of its type in the world (roll-front, sandstone-hosted). Melbourne businessman Ian Gandel controls about 36 per cent of the company. Before the 2005 discovery of Four Mile, it was best known for its Maldon gold project in Victoria.

Alliance has a 25 per cent free-carried interest in Four Mile, named for its distance from the operating Beverley mine.

Operator and 75 per cent partner is Quasar Resources, the exploration arm of Heathgate (itself part of US group General Atomics), owner-operator of Beverley, which produced 854 tonnes of uranium in 2005-06.